National Road Carriers Supports Budget 2025 'Investment Boost' As Catalyst For Freight And Transport Sector Growth

National Road Carriers Association (NRC) welcomes the Government's introduction of the 'Investment Boost' tax incentive in Budget 2025, recognising it as a significant step towards enhancing productivity and stimulating growth within New Zealand's freight and transport sectors.

The 'Investment Boost' allows businesses to immediately deduct 20% of the cost of new assets - such as machinery, equipment, vehicles, and commercial buildings - from their taxable income in the year of purchase, in addition to standard depreciation deductions. The initiative is projected to increase New Zealand's GDP by 1%, wages by 1.5%, and capital stock by 1.6% over the next two decades, with approximately half of these gains expected within the first five years.

“For the freight and transport industry, this incentive provides a timely opportunity to invest in modernising fleets, upgrading logistics infrastructure, and adopting advanced technologies,” says NRC GM Policy & Advocacy James Smith.

“Such investments are crucial for improving operational efficiency, reducing environmental impact, and meeting the evolving demands of supply chains.

“NRC acknowledges the Government's commitment to fostering a business environment conducive to investment and growth. We encourage our members and industry stakeholders to leverage this incentive to enhance their operational capabilities and contribute to New Zealand's economic resilience.”

Note

National Road Carriers Association (NRC) is New Zealand’s progressive nationwide organisation representing supply chain companies. It represents 1500 members, who collectively operate 16,000 trucks throughout New Zealand. NRC supports its members with legal, financial, employment relations, health & safety, workplace relations, business and environmental advice. It advocates on behalf of members and works with Central and Local Government on road transport infrastructure and regulations.

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